Hi JulieAs Dan has mentioned refinancing will have no benefit if you are looking to increase the Tax deductions and the redrawn interest will not be deductible.Personally I would spend a dollar or two fixing up the cracks so the property is readily tenantable (assuming these are cosmetic and not significant flaws in the building) and then look at…[Read more]

Doesnt quiet work like that.Dont forget you can only usually access a maximum of 90% of the current valuation so in your example $350K x 90% = 315,000 less existing loan of $256,000 = Access to $59000.

Yes course it can be achieved but if the Vendor is half smart he will be aware of the moving market and expect a higher premium paid up front for the Call Option or a shorter exercise period so if you falter he can capitalise on the appreciating prices.

Also bear in mind that most loans these days are also Credit scored in additional to using a numeral based calculation and the combination of the 2 will produce the lending result.Equity release is a common strategy and one i have used effectively to get where i have today.Remember Rome wasnt built in a day so a skillfull Mortgage Broker is one…[Read more]

Lenders assess serviceability using a P & I repayment on an affordability rate as a buffer to allow for when the loan rolls over to P & I at the expiry of the interest only period.The Dragon has a maximum interest only term of 15 years on its Term products.

As long as the property available for rent then you are entitled to claim the deductions.

Because the funds you dont use can be used as deposit on another IP or indeed as deposit for your own non deductible PPOR.

Never needed one but have been on the other end and funded one.Worked fine in this case but often timing can be an issue.Person lending the money wants security and this cant be obtained until settlement however funds usually needed up front to show deposit for the loan from the main lender. Kinda chicken and egg issue.Couple of ways around it if…[Read more]

Hi MikeIs it correct that I could only claim 30 c in the dollar for the LMI – Almost.LMI is a loan cost so once the property becomes available for rent you could claim the portion of LMI left over the 5 year period.Like all loan related costs it will help you reduce your Taxable income so in effect you are getting a 30% Tax deduction on the premium.

ChrisSeems to be the same issue every US investor suffers the problem of good property management.I was lucky enough to buy a beachside property in San Juan Capistrano in 1989 next to my Auntie who had lived in the suburb for 20 years and still does. Initially for the first 12 or so years we rented the house out to the same person and of course…[Read more]

To be honest like Terry i have never used a computer serviceability program and work out all my calculations the long way to check and then double check as there as so many hurdles you can get caught on.Even with 1 Day ABN you will need to state and income so given the Anz fiasco this may not be such a good idea after all.

Is your Accountant going to knock off your cost of CGT and Stamp Duty on these Transfers off your Accounting fees for the rest of time.With this sort advice i would be look to engage the services of a new number cruncher.

Also dont forget you always take a 95% lvr interest only and put the surplus deposit, FHOG into the CBA non transactional offset account and save up for the next IP.Sure LMI will be payable but will be a Tax deduction in the Tax year when the property is available for rent.

Always a pleasure Maree.

Hate to say those lenders who will look at it now will charge you more than Anz and probably wont make it worth.Absolutely pointless to ring Anz and argue as you didnt mean their credit serviceability model and they wont go back on that whoever you are. As i say think it was a total waste of time lodging the application if you Broker hadnt spoken…[Read more]

ChrisWhy not post the question here and get other members answers.Members like Nigel K have been involved in the US for about 5 years so can offer some expertise.I purchased my first home in the US in 1989 and still own the property.

Oh thats ok i can handle that lol

Hate to say i think your Broker has now blown the deal for you as this will show on your Credit Report.Altenative is to look at a Nodoc deal where no evidence is required however interest rates will be higher and you are pboably better off staying put.

Hi MareeYour Account would lodge a 221D Tax variation form and when it comes back from the ATO would hand the letter into you respective employers and they would take less Tax out from the pay period onwards.You are unable to back date and need to wait until June 30 to obtain the balance of the refund.

DDevelopment funding works 2 ways depending on the strength of the overall deal:1) You would obtain upto an 80% lend to acquire the site (more likely 70% these days) and the upto 80% of the construction costs. You would need to fund the development approval, council costs and BA from your own pocket.Once the construction has been completed (and at…[Read more]